The dollar is weakening. The US dollar index has dropped by more than 8% since the start of the year, putting the currency at its lowest point in about three years.
The uncertainty about the prices and fears of President Donald Trump of an imminent recession has harmed the dollar.
Here is what intelligent people and institutions have to say about his depreciation.
Deutsche Bank
Deutsche Bank analysts in a note said on Thursday that they planned a “low trend of the dollar”.
“The dollar market is finally there,” they wrote.
“At the heart of the dollar bear market are three evaluations: a reduced desire for the rest of the world to finance growing twin deficits in the United States; by extension, a peak and progressive relaxation in high American assets and a greater desire to deploy a national financial area to support growth and consumption outside the United States.”
Jan Hatzius, Goldman Sachs
“I believe that the recent depreciation in dollars of 5% on a large business base has much more to go,” wrote Jan Hatzius, chief economist of Goldman Sachs, in an editorial.
He listed one of the consequences of the weakness of the dollar as exerting upward pressure on consumer prices, which prices have already achieved.
“Dollars damping strengthens our point of view that” the incidence “of higher American prices will mainly be up to American consumers, not foreign producers,” said Hatzius.
Ken Griffin, citadel
Ken Griffin, a billionaire of Citadel, told Washington, DC from Semaor in Washington on WaShington on WaShington on Wednesday that Trump’s trade war was putting the American brand in danger.
He said that when comparing the dollar to the euro, America “became 20% poorer in four weeks” due to the dollar slide compared to the single currency.
“All you are trying to do is walk and not drowning,” he added.
Ken Griffin de Citadel. APU Gomes / Getty Images
Torsten Slok, Apollo
“By depreciating the dollar and starting a trade war on products, which represent less than 10% of American GDP, the United States risks the rest of the world will slow its imports of 80% of the American economy which is services, such as Iphones, Windows, Facebook, and in a big newspaper,” wrote Torsten Slok, partner and chief economist at Apollo Global Management, wrote in a newspaper in a newspaper THURSDAY.
“In addition, a depreciating dollar exerts upward pressure on inflation and the term premium, which can create new macroeconomic challenges.”
Pimco
“The United States has long enjoyed a privileged position, the dollar serving as global reserve currency and reserve assets,” wrote Pimco analysts in a note, adding that this status was not guaranteed.
“If world capital takes place in American assets decrease, it could point to a more multipolar world with a decrease in dependence on a singular reserve currency.”
UBS
The strategists of UBS wrote in a note that the dollar “weakened considerably”.
“Volatility on the FX markets went to the levels observed for the last time in 2022,” they said.
After the recent sale in dollars, the bank wrote that it abstains from the trades based on a dollar.
UBS’s strategists say the dollar has “weakened considerably”. Mark Lennihan / AP Photo
Adam Turnquist, LPL
Adam Turnquist, chief technical strategist of LPL Financial, said: “War tensions of the construction of construction with China have intensified growth problems and increased expectations for Fed rate reductions, weighing on dollar demand.”
“The coverage costs to protect themselves from the drawbacks of the dollar have reached multi-year heights,” he said.
“Ventilation of the dollar consolidation range would not only be technically significant, but could also stir up the fear of the health of the American economy.”
America Bank
The dollar has entered a secular drop, said Bank of America analysts led by Michael Hartnett.
They have written that the currency is negotiated at 4.6% below its mobile average at 200 days: “The lower US dollar will take place slowly with lower or quickly yields with higher yields, it is brutally indicated by the price of gold.”
Shannon Saccocia, Neuberger Berman
Shannon Saccocia de Neuberger Berman. Svb
“The US dollar has continued to lose value even though the US stock markets and bonds stabilized,” Shannon Saccocia, CEO and director of wealth investments at Neuberger Berman said on Thursday.
“This is worrying in the longer term, because a simultaneous sale in currency and bonds is associated with risky countries rather than countries and suggests structural damage on global demand for workers in US dollars.”
If the dollar continues to lose ground, short-term investors outside the United States may decide that “money pain prevails over performance,” she said.
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